Tracking Founder Salaries in Fiscal Year 2023: Assessing Startup Founder Compensation During the Funding Downturn

In the midst of the persistent funding challenges impacting startups, workforce reductions and salary reductions have become common occurrences. This has prompted inquiries into whether startup founders have experienced a parallel decline in their compensation.

In response to this inquiry and to provide ongoing insights into founder remuneration, Inc42 has introduced the 'Founder Salaries FY23 Tracker.'

During FY23, Supam Maheshwari of FirstCry emerged as the highest-earning founder, with an annual remuneration totaling INR 200.7 Cr.

In the financial year 2022-23 (FY23), a total of 98 founders from 57 emerging tech firms in India received a collective salary amounting to INR 496 Cr.

The average annual salary for founders experienced a notable increase, soaring by 68% from INR 3.07 Cr in FY22 to INR 5.16 Cr in FY23.

These trends unfold against the backdrop of the ongoing funding winter, which has prompted a significant recalibration within India's startup landscape. Startups have shifted focus towards achieving profitability, necessitating stringent cost-cutting measures such as pay reductions and staff layoffs. Inc42's layoff tracker reveals that more than 37,620 employees have been laid off by Indian startups since the onset of the funding winter in 2022.

While these measures have facilitated profitability for some startups or mitigated losses, many companies continue to grapple with financial challenges. Despite reporting a collective operating revenue of INR 1.10 Lakh Cr, 39 of the 57 companies recorded a combined loss of INR 31,965 Cr in FY23.

Amidst these developments, questions arise regarding the impact on founder remuneration amidst employee layoffs and pay cuts. To address these inquiries and provide ongoing insights into founder compensation, Inc42 has introduced the 'Founder Salaries FY23 Tracker.'

This tracker aims to offer updates on founder remuneration in FY23, including changes in salary compared to FY22, sourced from MCA filings, annual reports, and DRHPs. It's important to note that this list is not a ranking, and companies are listed alphabetically. The tracker will be periodically updated to provide accurate and relevant information.

*NOTE: Includes, salary, wages, & bonus

^ NOTE: Includes short-term employment benefits and share-based payments

Supam Maheshwari | FirstCry

Supam Maheshwari, one of the cofounders of FirstCry, an omnichannel startup gearing up for an IPO, recorded an annual remuneration of INR 200.7 Cr for the financial year ending March 31, 2023. According to the startup’s DRHP, Maheshwari’s salary in FY22 amounted to INR 29.1 Cr. Subsequently, in the initial three months of FY24, Maheshwari received INR 25.8 Cr as part of his annual compensation.

The DRHP disclosures revealed that Maheshwari’s remuneration for FY23 and the first quarter of FY24 included short-term employment benefits and share-based payments.

In FY23, FirstCry witnessed a substantial increase in losses, exceeding 500% to INR 486 Cr, although its operating revenue climbed to INR 5,632.5 Cr.

Nithin & Nikhil Kamath | Zerodha

Nithin and Nikhil Kamath, the cofounders of Zerodha, a bootstrapped stockbroking platform, each received an annual salary of INR 48 Cr in FY23. Despite Zerodha's net profit rising by 37% to INR 2,909 Cr, their remuneration remained unchanged from the preceding fiscal year. The company's total revenue approached the INR 7,000 Cr mark during the review period.

Ritesh Agarwal | OYO

Ritesh Agarwal, the founder of OYO, saw his remuneration increase to INR 12 Cr, marking a 114% surge from the INR 5.6 Cr received in FY22. However, this growth occurred alongside the termination of nearly 600 employees by OYO during FY23.

OYO reported a 34% decrease in net loss to INR 1,286.5 Cr in FY23 from INR 1,941.5 Cr in the previous fiscal year. Despite this decline, the company's operating revenue expanded by 14% to INR 5,463.9 Cr in FY23.

Deepak Singh Ahlawat | Gameskraft

Deepak Singh Ahlawat, a cofounder of Gameskraft, experienced a substantial increase in his annual remuneration, which surged by 264.6% to INR 10.1 Cr in FY23 from INR 2.77 Cr in the preceding fiscal year.

Gameskraft's operational revenue surged by 24.8% to INR 2,662.5 Cr in FY23 from INR 2,133.1 Cr in FY22, with profits rising by 14.2% to INR 1,061.9 Cr.

Manish Taneja | Purplle

Manish Taneja and Rahul Dash, the cofounders of Purplle, an ecommerce platform focusing on beauty products, each received INR 6.71 Cr in remuneration for FY23, marking a remarkable 527% increase from the INR 1.07 Cr they received in the previous fiscal year.

Purplle's operating revenue surged by 116% to INR 474.9 Cr in FY23 from INR 219.8 Cr in FY22. However, the company's losses expanded by 13% to INR 230 Cr from INR 203.6 Cr in FY22.

Nitish Mittersain | Nazara Technologies

Nitish Mittersain, the CEO and cofounder of Nazara Technologies, received INR 4 Cr as remuneration in FY23, reflecting a 21% increase from the INR 3.3 Cr earned in the previous fiscal year.

Nazara Technologies reported an operating revenue of INR 1,091 Cr in FY23, representing a 75% surge from INR 621.7 Cr in FY22. Additionally, the company's net profit rose by 21% to INR 61.4 Cr from INR 50.7 Cr in FY22.

Vijay Shekhar Sharma | Paytm

Vijay Shekhar Sharma, the founder of Paytm, received INR 4 Cr as remuneration in FY23, marking an 8% increase from the INR 3.7 Cr received in FY22.

Paytm's operating revenue surged by 1.6 times to INR 7,990.3 Cr in FY23 from INR 4,974.2 Cr in FY22. Moreover, the company's net loss decreased by 26% to INR 1,766.5 Cr in FY23 from INR 2,396.4 Cr in FY22.

Dinesh Agarwal | IndiaMART

Dinesh Agarwal, the founder of IndiaMART, received a salary of INR 3.8 Cr, marking an 11.8% increase from the INR 3.4 Cr received in the preceding year.

IndiaMART's operating revenue surged by 31% to INR 985.3 Cr in FY23 from INR 753.4 Cr in FY22. However, the company's profit dipped by approximately 5% to INR 283.8 Cr from INR 298 Cr in FY22.

Sahil Barua & Kapil Bharati | Delhivery

Sahil Barua, the CEO of Delhivery, received INR 3.1 Cr in FY23, reflecting an 11% increase from the INR 2.88 Cr received in FY22. Kapil Bharati, the CTO of Delhivery, received INR 3 Cr in FY23, marking a 24% increase from the INR 2.42 Cr received in FY22.

Delhivery reported a 5% increase in operating revenue to INR 7,225.3 Cr in FY23 from INR 6,882.2 Cr in FY22. Moreover, the company's losses remained nearly flat at INR 1,007.7 Cr in FY23 compared to INR 1,011 Cr in FY22.

Gaurav Singh Kushwaha| BlueStone

Gaurav Singh Kushwaha, the CEO and cofounder of BlueStone, received an annual remuneration of INR 3.1 Cr, reflecting a surge of 313% from the INR 75 Lakh received in the previous fiscal year.

BlueStone witnessed a 67% surge in operating revenue to INR 771 Cr in FY23 from INR 461.3 Cr in FY22. Additionally, the company's net loss increased by 183% to INR 167.2 Cr in FY23 from INR 59 Cr in FY22.